The Hindu Business Line : Mitsubishi Chemical Corp wants Bengal govt to retain current holding

The West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, with the Managing Executive Officer and Chief Operating Officer of Mitsubishi Chemical Corporation PTA, Mr Tokio Niikuni, at Writers Building in Kolkata on Monday. — A. Roy Chowdhury

Kolkata , Jan. 9

EVEN as plans are being firmed up to increase the equity base of its Indian subsidiary, MCC PTA India Corp Pvt Ltd (MCPI) from its existing level of $123 million, Mitsubishi Chemical Corporation (MCC) of Japan is keen that the West Bengal government continues to retain its equity stake in MCPI, at the existing level of five per cent.

A letter in this regard was handed over to the West Bengal's Minister for Industry and Commerce and the Chairman of West Bengal Industrial Development Corporation, Mr Nirupam Sen, at a function here today to announce details of MCPI's expansion project at Haldia that would entail an investment of $370 million (Rs 1,665 crore).

The West Bengal's Chief Minister, Mr Buddhadeb Bhattacharjee, was also present at the function that was held in the state administrative headquarters of Writers' Buildings.

Speaking to newspersons after the function, Mr Shotaro Goda, General Manager of MCC, Japan, said a decision on how much fresh equity would be raised to fund the company's expansion project would be taken in the months ahead.

"We are keen that WBIDC should participate in the next round of equity infusion and retains its stake in the company at the existing level of five per cent", he said.

Earlier, speaking on the occasion, Mr Tokio Niikuni, Managing Executive Officer and COO Petrochemicals Segment of MCC, said a second production line would be set up at Haldia for producing PTA (purified terepthalic acid).

The second production line, that would entail an investment of $370 million, would have a capacity to produce 800,000 tonnes of PTA per annum.

Currently, MCPI's PTA plant at Haldia has the capacity to produce 470,000 tonnes of PTA per annum.

Mr Niikuni said MCC was the largest Japanese investor in India and an investment of $380 million had already been made at the PTA plant in Haldia.

MCC, which has operations in more than 50 countries worldwide, is the world's second-largest PTA producer with a total annual production capacity of three million tonnes.

According to him, once the 8,00,000 tonnes capacity is added, the facility at Haldia would become a major PTA production centre by global standards. Construction work for the project is expected to begin by mid-2006.

"We hope to achieve mechanical completion by the end of June 2008. Our target is to make this unit the largest capacity in a single line capable of producing the best-quality PTA in the world," Mr Niikuni said.

Mr Bhattacharjee took the opportunity to announce that the Central Government had decided to set up a "mega chemicals hub" at Haldia.